Fuel price hike looms on Christmas

MANILA, Philippines — Pump prices of petroleum products are expected to increase next week in time for the Christmas celebration.

The Department of Energy-Oil Industry Management Bureau (DOE-OIMB) indicated a per liter increase of P0.35 to P0.70 for gasoline, P1.10 to P1.40 for diesel and P0.90 to P1 for kerosene.

The estimates were based on the four-day trading in the international oil market and foreign exchange average.

DOE-OIMB assistant director Rodela Romero traced the price movements to a stronger US dollar and the fall of US crude stocks.

The US Federal Reserve likewise trimmed the benchmark interest rate by another 25 basis points last Wednesday, which in turn brought optimism on economic growth and oil demand.

Price hikes are also influenced by the potential supply impact resulting from tighter sanctions on Russia and limited diesel and gasoline supplies in Asia due to reduced exports from China and South Korea, according to an industry source.

Yesterday’s trading and other operating costs of oil companies would determine the final price adjustments, which will be announced on Monday and will take effect the following day.

This week, oil firms hiked gasoline and diesel by P0.80 per liter and kerosene by P0.10 per liter.